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One S. Church Street, Suite 200, Hazleton, PA 18201
p: 570.455.1508   f: 570.454.7787

Cost of Doing Business

Lower Operating Costs

A further advantage to locating in Greater Hazleton, Pennsylvania is the relatively low operating costs. According to a Milken Institute study on the cost of doing business, as of 2007, the Commonwealth ranks 21st out of the 50 states in terms of their cost of doing business. The Cost-of-Doing-Business Index, released by the Institute, indicates each state’s comparative advantages or disadvantages in attracting and retaining businesses. Those states with a low cost of doing business have, on average, greater job growth than those with high costs.

The Index measures wage costs, taxes, electricity costs and real estate costs for industrial and office space. Each state is measured on the five individual categories, and those weighted scores are compiled to make the overall index. An index score of 100 means that the state is equal to the U.S. average in that particular category. If a state's business cost index is 120, it means that the state's cost of doing business is 20 percent above than the national average. Similarly, if a state's business cost index is 80, it means that the state's cost of doing business is 20 percent less than the national average.

As noted in the table below, Pennsylvania’s cost of doing business is more competitive than all of its neighboring states along the Eastern Seaboard.

2007 Cost-of-Doing Business Index
2007 Rank Prior Rank State Wage Cost Index1 Tax Burden Index2 Electricity Cost Index3 Industrial Rent Cost Index4 Office Rent Cost Index5 Cost of Doing Business Index
21 18 Pennsylvania 96.6 97.9 102.2 86.9 105.8 97.2
2 2 New York 128.5 102.5 141.5 154.4 189.4 130.9
7 7 New Jersey 121.2 94.5 129.7 161.0 117.3 120.9
9 9 Delaware 110.5 132.1 87.8 96.3 112.3 110.1
11 11 Maryland 108.9 90.4 124.1 94.7 115.4 106.4
1- Wage cost measures the average annual wage per employee in all industries (receives 50% weight)
2- Tax Burden measures the annual state tax revenue as a share of personal income (receives 20% weight)
3- Measures the cost of commercial and industrial electricity cost in cents per kilowatt-hour (receives 15% weight)
4- Measures the cost of renting industrial (warehouse) space on a per square foot basis (receives 10% weight)
5- Measures the cost of renting office space on a per square foot basis (receives 5% weight)


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Business Financing


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Cranberry Creek

Cranberry Creek

Residential, retail and entertainment options at this 366-acre park.

CAN DO Foundation


Making a positive difference to the present and future well-being of the Hazleton area.

CAN BE, Inc.


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